At Least for Now, No Private Equity for Norway’s Sovereign Wealth Fund
Posted on 04/13/2024
According to a press release, “Norges Bank has advised the Ministry that the GPFG investment universe should be expanded to include unlisted equities. Today, the GPFG may be invested in unlisted real estate and unlisted infrastructure for renewable energy, but there is no general permission to invest in unlisted equities.
An expansion to unlisted equities would entail investments that have to be managed in a manner that is substantially different from the current investment management. The Ministry of Finance therefore wishes to gather more information about both financial and non-financial aspects of such investments. The Ministry intends for a new, external expert council for the Fund, as suggested by the Sverdrup-committee, to be established in 2024. Among the new council’s assignments shall be to assess different aspects of unlisted equities.
– The Government does not wish to open for unlisted equities now. This is an important decision, and we must allow time to consider it carefully. We wish to establish an independent expert council for the GPFG, and with input from this council we will get a better decision basis and broader debate about all aspects of investments in unlisted equities, says the Minister of Finance.”
LINK: https://www.regjeringen.no/en/aktuelt/the-government-pension-fund-white-paper-2024/id3033962/
Norway Government Pension Fund Global is freezing its plan for private equity allocation. In November 2023, Norges Bank recommended the sovereign wealth fund to invest in private equity.